Tds rate for royalty/technical services
This query is : Resolved
20 June 2015
What is the TDS rate for importing technical services. And what is the rate if import company having PE/BC in India.
20 June 2015
At the rate 10%
As per provision of section 115 A(1) (b) of the Income Tax Act 1961 ,a foreign company includes any income by way of Royalty other then income referred in Sub Section 1 of Section 44AD of income tax act received from a Indian concern ,the income tax payable shall be calculated at the rate of 25 % of the royalty income wef 1-04-2013 .Section 44DA relates to foreign company carrying on business through a P.E .How ever ,the rate of tax will not exceed the rate mentioned in DTAA .
Therefore ,since your client is paying Royalty to a foreign company which is not having a P.E. ,your client is liable to deduct Tax At Source as per provision of Section 195 of the Income Tax Act .
As per provision of section 115 A(1) (b) of the Income Tax Act 1961 ,a foreign company includes any income by way of Royalty other then income referred in Sub Section 1 of Section 44AD of income tax act received from a Indian concern ,the income tax payable shall be calculated at the rate of 25 % of the royalty income wef 1-04-2013 .Section 44DA relates to foreign company carrying on business through a P.E .How ever ,the rate of tax will not exceed the rate mentioned in DTAA .
Therefore ,since your client is paying Royalty to a foreign company which is not having a P.E. ,your client is liable to deduct Tax At Source as per provision of Section 195 of the Income Tax Act .
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- GST ON EXPORT COMMISSION
- RCM INVOICING FROM NOV-2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- ITC EXCESS CLAIM + RCM NOT PAID...BOTH FOR FY 2020-21......PAID IN FY 2024-25....EFFECT
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
